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Category Archives: Aerospace

Amphenol Aerospace Introduces Dualok – The Latest Advancement in D38999 Plug Connectors

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SIDNEY, N.Y., June 13, 2013 /PRNewswire/ --Amphenol Aerospace (APH), a global leader in interconnect technologies, has designed the Dualok Interconnect System for D38999 Series III plug connectors for use in harsh environment applications across multiple markets, such as commercial and military aircraft and rotorcraft, where superior electrical performance and weight savings is needed.

The Dualok Interconnect System is an enhanced anti-decoupling mechanism that can be used on virtually any cylindrical plug connector and backshell. It greatly improves electrical performance in harsh environments while providing a size and weight savings when compared to standard connectors in the same class. Dualok technology can be applied to the plug connector and backshell and will mate with standard receptacles.

The Dualok Interconnect System was developed for harsh environment and high vibration applications where D38999 Series III plugs are used. Testing has proven that Dualok performs under extreme vibration capabilities. Dualok reduces the relative motion of a connector mated pair to ensure they move as one uniform body. In addition, the Dualok Interconnect System has been proven through testing to perform better electrically under harsh environments. Results have shown it to have better shell-to-shell conductivity and reduced contact fretting. Finally, with the lightweight, hybrid composite/metal design, the Dualok Interconnect System offers a weight savings up to 40% when compared to standard D38999 Series III Aluminum or Stainless Steel connectors.

Chris Cappello, Amphenol Aerospace's Dualok Product Manager says, "We feel our Dualok Interconnect System is the next great step in D38999 Series III technology. It's a clear technological advantage for systems looking to maximize their electrical performance in harsh environment applications where saving weight is also a concern. It's based on the D38999 Series III connectors that are common throughout the market and requires no change to the receptacle side."

All D38999 Series III plug shell sizes and arrangements are now available, including the Sensor Series Size 7, in both Aluminum and Stainless Steel with multiple finish options. Sensor Series Size 7 D38999-style receptacles are available in wall-mount, in-line and hermetic options, all using size 22D contacts.

The Dualok Interconnect System can also be used on Amphenol Aerospace's 2M Plugs, Fiber Optic connectors, High-Speed copper connectors and any associated cable assemblies. In addition, the Dualok backshell is the ideal accessory for all Dualok plug connectors. It utilizes the same anti-decoupling mechanism as the plug connectors for complete end-to-end interconnect protection from harsh environments resulting in better system electrical performance.

Amphenol Aerospace will display the Dualok Interconnect System at the Paris Air Show from June 17th through June 21st. They will be located at Hall 2B E 80.

Contact Information:Chris Cappello (607) 287-8138 ccappello@amphenol-aao.com

About Amphenol Aerospace As one of the largest developers of interconnection technologies for the military and commercial aerospace industries, Amphenol Aerospace Operations (AAO) provides OEMs worldwide with rugged, high quality products that withstand the harshest environments.

AAO provides complete interconnect solutions for a wide array of markets. Designing, manufacturing, and supplying circular and rectangular, electronic, board level, fiber optic, EMI/EMP filter connectors, as well as PCBs, backplanes and integrated systems.

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Amphenol Aerospace Introduces Dualok - The Latest Advancement in D38999 Plug Connectors

HM Dunn Aerospace Appoints Rick Rosenjack as Chief Operating Officer

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Euless, Texas June 11, 2013 HM Dunn Aerospace (www.hmdunn.com), a leader in the global distribution of superior quality aircraft components, kits, assemblies and large monolithic part structures, announced today the appointment of Rick Rosenjack as the companys Chief Operating Officer. In his new role, Mr. Rosenjack will be responsible for all company operations at HM Dunn Aerospace manufacturing locations. The company has facilities in Euless, Texas; Wichita, Kansas; and St. Louis, Missouri.

Rick is a dynamic, results-oriented leader who brings a tremendous amount of aerospace industry experience to his new position, said Phil Milazzo, Chief Executive Officer of HM Dunn Aerospace. Highly respected in the aerospace community, he is known for his unparalleled, customer-first focus and proven track record for improving sales, backlog, and profitability. HM Dunn will benefit greatly from his expertise in operations and customer service on a global scale, and I look forward to working with Rick as a valued member of our team.

Mr. Rosenjack has spent more than 25 years in the aerospace industry and has served in a number of senior leadership positions in operations, sales and marketing, program management, and aftermarket services. Prior to joining HM Dunn Aerospace, he was the Vice President and General Manager of PCC Aerostructures (formerly Heroux Devtek Aerostructures), a leading Tier II supplier of highly engineered metallic and composite parts, kits, and assemblies to the global aerospace industry. There, he oversaw global operations. Rick also led the team that developed long-term agreements for a significant majority of the companys sales, launched agreenfieldsite designed to maximize production at low costs, and increased customer satisfaction levels.

Prior to PCC Aerostructures, Mr. Rosenjack enjoyed a 20-year career with Textron, a multi-industry company with a global network of aircraft, defense, industrial and finance businesses. At Textron, he served as Senior Vice President of the Commercial Bell Helicopter Business with responsibility for $1 billion in annual sales. During his tenure, Mr. Rosenjack also was responsible for programs including Airbus, Boeing, Cessna, Gulfstream, and Lockheed. In addition, he served as a board member of the Bell/Agusta Aerospace Company.

HM Dunn has an enviable track record in the aerospace industry, and I look forward to strengthening partnerships with all of our customers while building the business, said Mr. Rosenjack. We want our customers to view HM Dunn Aerospace as an integral partner in executing their long-term strategic plans. I am confident that we will achieve this level of success.

Mr. Rosenjack is a graduate of Bethel College and the Vanderbilt University Owen Graduate School of Management, where he received his Master of Business Administration degree. Additionally, he completed management programs at both Harvard University and The Wharton School of the University of Pennsylvania.

About HM Dunn:

HM Dunn Aerospace (www.hmdunn.com) is a provider of structural components to the premier global OEM and Tier 1 commercial aerospace, corporate and regional aerospace and defense aerospace industries.

A privately held corporation headquartered in Euless, Texas with operations in Wichita, Kansas, and St. Louis, Missouri, HM Dunn Aerospace Inc. specializes in working with the latest high-tech and exotic materials components to create sub-assemblies and large monolithic part structures for fixed wing and rotary aircraft. The HM Dunn Aerospace business has approximately 500 employees.

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HM Dunn Aerospace Appoints Rick Rosenjack as Chief Operating Officer

HM Dunn Aerospace Appoints Philip F. Milazzo Chief Executive Officer

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Euless, Texas June 11, 2013 HM Dunn Aerospace (www.hmdunn.com), a leader in the global distribution of superior quality aircraft components, kits, assemblies and large monolithic part structures, announced today the appointment of Philip F. Milazzo as the companys Chief Executive Officer. In his new role, Mr. Milazzo will be responsible for the HM Dunn Aerospace business with operating facilities in Euless, Texas; Wichita, Kansas; and St. Louis, Missouri.

Phil is a respected business leader with vast aerospace industry experience and relentless customer focus. His drive and commitment to providing the best-in-class customer experience are complemented by his strong operations background and expertise in implementing Lean and Six Sigma methodologies on a global scale with incredible speed and sustained results,said Eugene Conese, Jr., Chairman of HM Dunn Aerospace. By extension, Phil has earned the confidence of a broad base of global customers throughout his career.

Mr. Milazzo brings to HM Dunn a career spanning more than 30 years of leadership and innovation, having served in senior level operations and sales positions in the aerospace and chemical industries. Prior to joining HM Dunn Aerospace, Mr. Milazzo was President and CEO of PAS Technologies, a provider of a diverse range of products and services for OEM and MRO markets across the commercial and military aerospace, industrial gas turbine, and oil field industries. During his tenure with PAS, he also was Senior Vice President of Operations, playing an instrumental role in driving the Lean culture at the company. In addition, as Executive Vice President, Sales and Marketing, Mr. Milazzo developed engineering and new repair development strategies and aggressively expanded business relationships with domestic and global customers. Prior to PAS Technologies, he served as Vice President of Operations for BioLab Inc., a subsidiary of global specialty chemicals company Chemtura Corporation.

Mr. Milazzo holds a Bachelor of Business Management degree from LouisianaTechUniversityand has more than 25 years of lean manufacturing experience. His writing is included in Workplace Training & Learning: Cases from Cross-Cultural Perspectives, a collection of case studies edited by Ronald L. Jacobs and Aahad M. Osman-Gani. These case histories detail a variety of situations and approaches to training and learning in different work settings.

It is an honor to join HM Dunn Aerospace as CEO, and I am proud to lead a company with the mission of becoming stronger and more competitive in the marketplace by increasing customer satisfaction and value, said Milazzo. In today's challenging economic environment, it is imperative for us to provide customers with innovative, advanced products and services offerings that make HM Dunn the partner of choice.

Milazzo added that he will concentrate on key growth initiatives for HM Dunn Aerospace, including extending products and services on existing platforms; expanding supply chain capabilities; and adding new market applications for the companys services.

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HM Dunn Aerospace Appoints Philip F. Milazzo Chief Executive Officer

ITT to Showcase Highly Engineered Aerospace Technologies at Paris Air Show

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WHITE PLAINS, N.Y.--(BUSINESS WIRE)--

ITT Corporation (ITT) is an industry leader in providing highly engineered and customized solutions to the aerospace industry, offering manufacturers critical components that offer reliability and durability in a broad range of applications. Next week, the company will showcase its capabilities at the Paris Air Show, a global event that provides a platform for exhibitors to demonstrate aircraft, equipment and technologies.

As a global multi-industrial company, ITT is a leader in providing the aerospace industry with highly engineered and customized products and services that are engineered to withstand the harshest operational environments, said Munish Nanda, president of ITTs Control Technologies business. Our customers can count on us because we are well-positioned with a broad portfolio of premium-quality products, trusted brands and global support.

ITT designs and manufactures highly engineered technologies for the aerospace industry, including valves, pumps and switches for fluid and environmental control systems and utility actuators that open and close exterior doors with improved fuel efficiency and reduced noise, as well as custom engineered components that minimize vibrations and noise, control overhead stowage bins, allow seats to recline and return to the upright position with the touch of a button, and contribute to in-flight communications systems.

ITT provides an array of technologies include leading brands such as Cannon and Enidine that offer customers quality, performance, reliability and safety, said Neil Yeargin, president of ITTs Interconnect Solutions business. These lightweight solutions help manufacturers optimize their weight requirements to reduce fuel costs and increase communication data bandwidth, while ensuring critical systems operate reliably and efficiently, minimizing noise and vibration, and providing a comfortable experience for passengers.

At the Paris Air Show, ITT will highlight several technologies including the newly qualified Cannon MIL-DTL-38999 Series III composite lightweight connector and the Trinity MKJ Series 5 mini-circular connector, a lightweight connector that has a unique internal ratchet mechanism system designed to handle robust shock and vibration environments.

Other solutions include high-torque, precision-controlled actuator technology that allows modulation in an aircrafts RAM air door during flight; a compact linear actuator designed to open and close inlet doors upon take-off and landing, thereby reducing noise and enabling the aircraft to fly into populated areas; several new switch products that are being used on next generation thrust reverser systems for major aircraft manufacturers; and the EnidampTM Advanced Damping Treatment System.

ITTs Interconnect Solutions and Control Technologies businesses serve customers in the energy, transportation and industrial end markets. Interconnect Solutions manufactures and supplies a variety of connectors and interconnects that make it possible to transfer signal and power in an increasingly connected world, under the brand names Cannon, VEAM and BIW Connector Systems. Control Technologies manufactures and supplies highly engineered aerospace components and industrial products through brands such as Enidine, Neo-Dyn and Enivate. For more information, visit the Web sites at http://www.ittcannon.com or http://www.enidine.com/.

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. Founded in 1920, ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2012 revenues of $2.2 billion. For more information, visit http://www.itt.com.

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ITT to Showcase Highly Engineered Aerospace Technologies at Paris Air Show

Willis Announces New Aerospace Executive Leadership Team for the Americas

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LONDON, June 11, 2013 (GLOBE NEWSWIRE) -- Willis Group Holdings (WSH), the global risk adviser, insurance and reinsurance broker, today announced a new leadership team for its Aerospace business in the Americas to capitalise on significant growth opportunities in the region.

Steve Kisor has been appointed President of Willis Aerospace in the Americas. Kisor was previously Executive Vice President (EVP) of Willis Aerospace in the Americas based in Los Angeles. Steve will focus on key client relationships and senior interaction with the aviation insurance markets.

Willis also announced the appointment of John Rooley as CEO of Willis Aerospace Americas, based in Vancouver. In addition to his new responsibilities, Rooley will retain his position as President and CEO of Willis Aerospace in Canada. John will be responsible for delivery of the Americas' plan, strategy and growth.

Steve and John are joined by Neil Getter, EVP of Willis Aerospace Americas, based in New York, to form the Willis Aerospace Americas executive leadership team along with Philip Smaje, Chief Executive Officer (CEO) of Willis Global Aerospace in London. Neil will continue to run our Aerospace operation in New York and his experience will play a significant role in the leadership of the Americas for Aerospace.

Commenting on the appointments, Smaje said: "We are delighted to announce a new leadership team for the Americas, to continue the strong growth we have enjoyed across Canada, Latin America and the United States in the recent past. Both Steve and John will bring to bear tremendous insurance expertise and unique risk insights, developed through years of working closely with clients around the world."

"The Americas are a significant part of our business making up close to 40% of our global portfolio, which has performed robustly in a very challenging business climate. We are proud of what we have achieved and I am pleased to have the opportunity to work closely with Steve, John, Neil and the rest of the team to drive and deliver an exciting future."

About Willis

Willis Group Holdings plc is a leading global risk advisor, insurance and reinsurance broker. With roots dating to 1828, Willis operates today on every continent with more than 17,000 employees in over 400 offices. Willis offers its clients superior expertise, teamwork, innovation and market-leading products and professional services in risk management and transfer. Our experts rank among the world's leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Find more information at our website, http://www.willis.com, our leadership journal, Resilience, or our up-to-the-minute blog on breaking news, WillisWire. Across geographies, industries and specialisms, Willis provides its local and multinational clients with resilience for a risky world.

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Willis Announces New Aerospace Executive Leadership Team for the Americas

LMI Aerospace Announces Company to Present at the Deutsche Bank Global Industrials and Basic Materials Conference

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ST. LOUIS, June 11, 2013 (GLOBE NEWSWIRE) -- LMI Aerospace, Inc. (LMIA), a leading provider of design engineering services and supplier of structural assemblies, kits and components to the aerospace and defense markets, announced today it will present at the Deutsche Bank Global Industrials and Basic Materials Conference, which will be held at The Westin Chicago River North hotel on June 12 to 14, 2013.

LMI Chief Executive Officer Ronald S. Saks will present for the company on Thursday, June 13, 2013, at 12:20 p.m., Eastern Daylight Time.

The presentation will be streamed live and can be accessed via the LMI web site http://ir.lmiaerospace.com. A copy of the presentation will be available on the LMI web site.

LMI Aerospace, Inc. is a leading provider of design engineering services and supplier of structural assemblies, kits and components to the aerospace and defense markets. Through its Aerostructures segment, the company primarily fabricates, machines, finishes, integrates, assembles and kits formed close tolerance aluminum and specialty alloy and composite components and higher level assemblies for use by the aerospace and defense industries. It manufactures more than 30,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, operated by its D3 Technologies, Inc. subsidiary, the company provides a complete range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions via a complete turnkey engineering solution.

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LMI Aerospace Announces Company to Present at the Deutsche Bank Global Industrials and Basic Materials Conference

Photo Release — HM Dunn Aerospace Appoints Rick Rosenjack as Chief Operating Officer

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EULESS, Texas, June 11, 2013 (GLOBE NEWSWIRE) -- HM Dunn Aerospace (www.hmdunn.com), a leader in the global distribution of superior quality aircraft components, kits, assemblies and large monolithic part structures, announced today the appointment of Rick Rosenjack as the company's Chief Operating Officer. In his new role, Mr. Rosenjack will be responsible for all company operations at HM Dunn Aerospace manufacturing locations. The company has facilities in Euless, Texas; Wichita, Kansas; and St. Louis, Missouri.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=19223.

"Rick is a dynamic, results-oriented leader who brings a tremendous amount of aerospace industry experience to his new position," said Phil Milazzo, Chief Executive Officer of HM Dunn Aerospace. "Highly respected in the aerospace community, he is known for his unparalleled, customer-first focus and proven track record for improving sales, backlog, and profitability. HM Dunn will benefit greatly from his expertise in operations and customer service on a global scale, and I look forward to working with Rick as a valued member of our team."

Mr. Rosenjack has spent more than 25 years in the aerospace industry and has served in a number of senior leadership positions in operations, sales and marketing, program management, and aftermarket services. Prior to joining HM Dunn Aerospace, he was the Vice President and General Manager of PCC Aerostructures (formerly Heroux Devtek Aerostructures), a leading Tier II supplier of highly engineered metallic and composite parts, kits, and assemblies to the global aerospace industry. There, he oversaw global operations. Rick also led the team that developed long-term agreements for a significant majority of the company's sales, launched a greenfield site designed to maximize production at low costs, and increased customer satisfaction levels.

Prior to PCC Aerostructures, Mr. Rosenjack enjoyed a 20-year career with Textron, a multi-industry company with a global network of aircraft, defense, industrial and finance businesses. At Textron, he served as Senior Vice President of the Commercial Bell Helicopter Business with responsibility for $1 billion in annual sales. During his tenure, Mr. Rosenjack also was responsible for programs including Airbus, Boeing, Cessna, Gulfstream, and Lockheed. In addition, he served as a board member of the Bell/Agusta Aerospace Company.

"HM Dunn has an enviable track record in the aerospace industry, and I look forward to strengthening partnerships with all of our customers while building the business," said Mr. Rosenjack. "We want our customers to view HM Dunn Aerospace as an integral partner in executing their long-term strategic plans. I am confident that we will achieve this level of success."

Mr. Rosenjack is a graduate of Bethel College and the Vanderbilt University Owen Graduate School of Management, where he received his Master of Business Administration degree. Additionally, he completed management programs at both Harvard University and The Wharton School of the University of Pennsylvania.

Editor's Note -- About HM Dunn:

HM Dunn Aerospace (www.hmdunn.com) is a provider of structural components to the premier global OEM and Tier 1 commercial aerospace, corporate and regional aerospace and defense aerospace industries.

A privately held corporation headquartered in Euless, Texas with operations in Wichita Kansas, and St. Louis Missouri, HM Dunn Aerospace Inc. specializes in working with the latest high-tech and exotic materials components to create sub-assemblies and large monolithic part structures for fixed wing and rotary aircraft. The HM Dunn Aerospace business has approximately 500 employees.

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Photo Release -- HM Dunn Aerospace Appoints Rick Rosenjack as Chief Operating Officer

Photo Release — HM Dunn Aerospace Appoints Philip F. Milazzo Chief Executive Officer

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EULESS, Texas, June 11, 2013 (GLOBE NEWSWIRE) -- HM Dunn Aerospace (www.hmdunn.com), a leader in the global distribution of superior quality aircraft components, kits, assemblies and large monolithic part structures, announced today the appointment of Philip F. Milazzo as the company's Chief Executive Officer. In his new role, Mr. Milazzo will be responsible for the HM Dunn Aerospace business with operating facilities in Euless, Texas; Wichita, Kansas; and St. Louis, Missouri.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=19225

"Phil is a respected business leader with vast aerospace industry experience and relentless customer focus. His drive and commitment to providing the best-in-class customer experience are complemented by his strong operations background and expertise in implementing Lean and Six Sigma methodologies on a global scale -- with incredible speed and sustained results," said Eugene Conese, Jr., Chairman of HM Dunn Aerospace. "By extension, Phil has earned the confidence of a broad base of global customers throughout his career."

Mr. Milazzo brings to HM Dunn a career spanning more than 30 years of leadership and innovation, having served in senior level operations and sales positions in the aerospace and chemical industries. Prior to joining HM Dunn Aerospace, Mr. Milazzo was President and CEO of PAS Technologies, a provider of a diverse range of products and services for OEM and MRO markets across the commercial and military aerospace, industrial gas turbine, and oil field industries. During his tenure with PAS, he also was Senior Vice President of Operations, playing an instrumental role in driving the Lean culture at the company. In addition, as Executive Vice President, Sales and Marketing, Mr. Milazzo developed engineering and new repair development strategies and aggressively expanded business relationships with domestic and global customers. Prior to PAS Technologies, he served as Vice President of Operations for BioLab Inc., a subsidiary of global specialty chemicals company Chemtura Corporation.

Mr. Milazzo holds a Bachelor of Business Management degree from Louisiana Tech University and has more than 25 years of lean manufacturing experience. His writing is included in Workplace Training & Learning: Cases from Cross-Cultural Perspectives, a collection of case studies edited by Ronald L. Jacobs and Aahad M. Osman-Gani. These case histories detail a variety of situations and approaches to training and learning in different work settings.

"It is an honor to join HM Dunn Aerospace as CEO, and I am proud to lead a company with the mission of becoming stronger and more competitive in the marketplace by increasing customer satisfaction and value," said Milazzo. "In today's challenging economic environment, it is imperative for us to provide customers with innovative, advanced products and services -- offerings that make HM Dunn the partner of choice."

Milazzo added that he will concentrate on key growth initiatives for HM Dunn Aerospace, including extending products and services on existing platforms; expanding supply chain capabilities; and adding new market applications for the company's services.

Editor's Note -- About HM Dunn:

HM Dunn Aerospace (www.hmdunn.com) is a provider of structural components to the premier global OEM and Tier 1 commercial aerospace, corporate and regional aerospace and defense aerospace industries.

A privately held corporation headquartered in Euless, Texas with operations in Wichita Kansas, and St. Louis Missouri, HM Dunn Aerospace Inc. specializes in working with the latest high-tech and exotic materials components to create sub-assemblies and large monolithic part structures for fixed wing and rotary aircraft. The HM Dunn Aerospace business has approximately 500 employees.

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Photo Release -- HM Dunn Aerospace Appoints Philip F. Milazzo Chief Executive Officer

Aerospace group finally has a pilot

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Published: Monday, June 10, 2013, 12:01 a.m.

A longstanding presence in Washington, the Pacific Northwest Aerospace Alliance named Melanie Jordan as the organization's executive director in February at its annual conference. PNAA previously had just a board of directors and lacked a focal.

"It was time for PNAA to have a face, a point of contact," Jordan said.

Jordan, who's a pilot, calls herself a "seasoned aviation enthusiast," having worked in the industry for four decades. She served on PNAA's board since 2007. Settling into her new role, Jordan recently talked about what distinguishes PNAA, which represents more than 700 companies in the region.

"We're the go-to organization for aerospace companies, lawmakers and anyone seeking information about the industry," she said.

In recent years, jetmakers have boosted production and competition among suppliers -- as well as regions. Here in Washington, there has been an effort to align education and workforce training to support the industry's needs.

"It's an exciting time in aerospace manufacturing," Jordan said.

Jordan's goals for PNAA in the coming years include growing the association's annual conference, increasing PNAA membership and continuing to build relationships with other aerospace organizations, regionally and internationally.

PNAA's annual conference has grown significantly over the past few years, drawing an increasingly international audience. The three-day event features speakers from jetmakers like Boeing, Airbus and Embraer. It also connects small and medium-sized companies with each other and with large suppliers. Notable analysts like Richard Aboulafia of the Teal Group and Scott Hamilton of Leeham Co. also provide perspectives on the industry.

Jordan anticipates the conference will be "more successful than ever" when it's held Feb. 4-6 next year in Lynnwood.

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Aerospace group finally has a pilot

‘Tale of Two Cycles’ in Aerospace & Defense, According to AlixPartners Study

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NEW YORK, June 10, 2013 (GLOBE NEWSWIRE) -- The global aerospace and defense (A &D) industry appears set to continue the drama for the foreseeable future. Some sectors, such as commercial aerospace, are booming, while others, such as defense in most Western countries, are declining. That's according to a new study, released on the eve of the industry's all-important Paris Air Show, from AlixPartners, the global business-advisory firm. Furthermore, says the study, continuous traffic growth is driving an overall industry profit pool increase, and the battle for the profit pool is expected to intensify across the board. AlixPartners concludes that in order to survive and thrive in the current industry cycle companies in the A &D industry must become more efficient, especially in the face of challenging commercial-aircraft ramp-ups, and diversify into new, more promising geographic defense markets.

The AlixPartners Global Aerospace & Defense Industry Outlook, a comprehensive analysis of sector and company financials as well as key industry trends, reveals much about the current state of the A &D industry and its future outlook. The overall industry grew by 6.8% in 2012, and showed improvement over the previous year's sales growth of 5.5%, but fell short of pre-financial-crisis growth levels (e.g., 10% in 2008). Digging deeper, however, the AlixPartners study reveals a mixed bag among sectors, with some clear winners and losers. Driving overall industry growth is commercial aerospace, which has been boosted by new orders and a 5% increase in airline and cargo traffic globally. However, the defense sector slowed significantly in the West, due to budget cuts.

While lower-tier suppliers have traditionally outperformed OEMs, the winds have changed. OEM revenue growth accelerated (from 1.6% in 2011 to 6.7% in 2012), while lower-tier supplier growth slowed (from 10.2% in 2011 to 6.6% in 2012). And, as frequent front-page headlines over the past year have noted, the airline industry has seen further consolidation, and near-consolidations, as it continued its struggle for profits.

"Right now, almost every part of the aerospace and defense business is having another look at costs, searching for efficiencies and struggling to stay ahead of the changing environments in which they do business," said Eric Bernardini, managing director at AlixPartners and head of the firm's global Aerospace & Defense Practice. "With the huge number of changes happening all at once -- whether in defense or commercial aviation -- identifying and keeping ahead of trends is what will generate long-term success."

Defense -- Cutting Costs and Capturing Emerging-Market Growth

The war on cost is heating up in the defense sector as companies are simultaneously chasing fewer revenue opportunities in Western nations and facing stiffer competition for a slice of the addressable emerging-market pie, says the study. Driven by retrenchment in the U.S. and Europe, global defense spending fell in 2012 for the first time since the 1998 spending drop, to $1.7 trillion in 2012. At the same time, the proportion of global spending by China and Russia is increasing, and, according to the study, by 2016 those two countries will make up almost a third (32%) of global spending by the "top 5" spenders (vs. just 17% in 2011).

With China and Russia being largely inaccessible to Western defense companies, this phenomenon is further squeezing the addressable market for Western companies. This will drive intense competition to capture export business in accessible emerging markets, such as Brazil and India, says AlixPartners.

"The rules are rapidly changing in defense," said Dave Fitzpatrick, managing director at AlixPartners and leader of the firm's Aerospace & Defense Practice in North America. "Traditional selling strategies are coming under great pressure and competitions in export markets -- particularly for combat aircraft -- are increasingly becoming 'winner-takes-all' deals."

Those with more balanced portfolios, such as lower-tier suppliers, will more easily be able to tackle the challenges of this new environment than will most OEMs, many of whom today are 80% reliant on defense and 75% dependent on U.S. and European markets. Moreover, finds the study, the cyber security market -- viewed by many as the "saving grace" of Western defense companies -- will likely not grow enough to compensate for declining defense spending.

To compete and thrive in this environment, according to AlixPartners, the key for defense firms will be to focus on cost reduction, improving both domestic programs' affordability and competitiveness in emerging markets. Aside from defense growth in emerging markets, the homeland security market globally, projected by the study to grow to $281 billion by 2022, represents another potential new path to profitability, according to AlixPartners. Defense companies that can leverage their program management, integration experience and government-contracting skills will be most able to take advantage of this opportunity, says the study.

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'Tale of Two Cycles' in Aerospace & Defense, According to AlixPartners Study


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